KARACHI: The rupee registered a substantial 2.91% gain against the US dollar during the previous week as finalisation of the Stand-By Arrangement (SBA) with the International Monetary Fund (IMF) gave strength to the local currency.
On Friday, the rupee settled at 277.9 in the inter-bank market, with a similar gain in the open market helping it close between 279 and 282. The narrower gap was a reflection of the stability in both currency markets, and remains a condition of the new SBA as well that will run through the second half of the current fiscal year.
The rupee kicked off the week on Tuesday with a hefty 3.8% gain as the currency market celebrated the staff-level approval of the IMF’s $3-billion SBA, which was announced on June 30.
The new programme, seen by many as an upgrade to the Extended Fund Facility that expired unsuccessfully at the ninth review, is subject to approval of the IMF Executive Board. The IMF has also confirmed Pakistan’s agenda is to be taken up on July 12 even though its official website calendar had not been updated to include Pakistan as of Sunday night.
Many experts believe the currency markets will show stability in the short term, with some downside pressure also likely as the central bank lifts import restrictions. However, this pressure would ideally be countered by inflows that start materialising after the IMF programme’s approval.
Open-market rates
In the open market, the PKR gained 8 rupees for both buying and for selling, against USD, closing at 279.00 and 282.00, respectively.
Against Euro, the PKR gained 7 rupees for both buying and selling, closing at 303.00 and 306.00 respectively.
Against UAE Dirham, the PKR gained 2.00 rupees for both buying and selling, closing at 76.30 and 77.00, respectively. Against Saudi Riyal, the PKR gained 1.70 rupees for both buying and selling, closing at 73.00 and 73.70, respectively.
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THE RUPEE
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Weekly inter-bank market rates for dollar
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Bid Close Rs. 276.30
Offer Close Rs. 276.50
Bid Open Rs. 285.80
Offer Open Rs. 286.00
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Weekly open-market rates for dollar
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Bid Close Rs. 279.00
Offer Close Rs. 282.00
Bid Open Rs. 287.00
Offer Open Rs. 290.00
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Copyright Business Recorder, 2023